menu click

The Library

Cash Flow Strategies

Cash Flow Strategies
Cash flow strategies are important to implement in a business. Without profits and positive cash flow, you can struggle to survive.

Long term stability: 

When setting finance and cash flow goals for a business, you should be aiming for long term stability. Businesses will need to realistically assess how and when they want to achieve their goals and plan accordingly. 


Awareness and timing: 

Businesses should be aware of exactly when cash is coming in and out. Having strategies in place to ensure clients pay on time can help businesses learn their expected income times. It is also worth remembering to consider customer transactions made with credit cards. This will help you to accurately estimate the amount of cash being handled and whether this is enough to cover expenses. 


Stay on top of records: 

Make sure your accounting information is updated regularly so you are able to see the financial state of your business at a glance. Although owners may not be directly responsible for the accounting practices, they should be aware of the business’ general intake and turnover. 


Keep finances separate: 

Mixing your business and personal finances can create confusion and uncertainty surrounding your business’ performance. By separating these, you’ll know how much money your company is generating and be in a good position to properly pay yourself. 

Excess cash could be used to strengthen and grow your business.


Post a Comment

  • Improve your niche marketing strategy

    A niche marketing strategy is one that targets a specific subset of a market and is not a strategy that is ideal for every business.
  • Tax pooling

    Inland Revenue (IRD) charges a high rate of interest on late tax payments (currently 8.22%), and in some circumstances the complexity of the provisional tax regime makes interest charges hard to avoid...
  • Familiarise yourself with the bright-line test criteria

    The bright-line test is a system the IRD uses to determine whether income received from the sale of residential land will be taxed. This process has undergone changes to become more expensive, meani...
  • Tax Working Group

    The Tax Working Group (TWG) released its long awaited Final Report (‘the Report’) on 21 February 2019, following a 13 month review during which the Group received over 7,000 public submissions. The ...